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ONCYF: Annual Meeting 2018

05/04/2018
By John Vandermosten, CFA

OTC:ONCYF

TSE:ONC

On May 3, 2018, Oncolytics Biotech (OTC:ONCYF / TSE:ONC) held their annual meeting in Toronto, Canada at the Toronto Region Board of Trade. The company provided a webcast of the presentation which emphasized the near doubling of survival benefit for patients with metastatic breast cancer. Dr. Coffey also highlighted other milestones for the company including a grant of Fast Track by the FDA and a partnership with Adlai Nortye which provides capital in return for a regional license in Asia. The company had additional successes for the year related to other REOLYSIN pursuits as well as a constructive relationship with the FDA, which is expected to approve a special protocol assessment in the near future. An uplisting to the NASDAQ is also planned along with new Phase II efforts to continue to explore the potential for the company’s lead candidate.

Beginning with a quick review of REOLYSIN’s mechanism of action, Dr. Coffey, emphasized the biologic’s stimulation of innate and adaptive response in the human immune system. He also underscored the agent’s ability to make a cold tumor hot, potentially enhancing the effect of combination therapies with checkpoint inhibitors.

Safety was another focus of the presentation. The company reiterated that over 1,100 patients have been treated with the agent and over 900 have received it intravenously with no maximum tolerated dose reached. Only mild (grade 1 or 2) flu-like symptoms reported and grade 3 or 4 lymphopenia and neutropenia were transient.

Combination opportunities are prolific for REOLYSIN due to its favorable characteristics. Therapies in conjunction with chemotherapy, checkpoint inhibitors, IMiDs and CAR-T are either currently underway or being considered.

Oncolytics provided details on its manufacturing partnerships, and very low cost of goods. They have a commercial scale manufacturing agreement with SAFC. The agent has a very long shelf life of over five years and it has a biosafety level 2 classification, which means no special handling requirements are needed.

Intellectual property protection is another important area for the biotech, and they hold a composition of matter patent on the reovirus that is extendable to 2033. The virus is uniquely identifiable to Oncolytics. Additionally, the company holds over 400 patents and 35 pending applications worldwide.

On the financing and corporate side, CFO Kirk Look reviewed the USD$86.6 million deal with Adlai Nortye, which provided a regional license in six Asian territories. In addition to upfronts of $21.2 million, and milestones of $65.4 million, the deal also provides for double digit royalty payments. The company is also seeking to consolidate its share count in order to qualify for NASDAQ listing. In February the company received shareholder approval to do so and they expect to do so prior to the end of 2Q:18.

The company concluded the presentation noting the collaborations and combination that are possible with their biologic. Their agent has proof of concept and safety data and is ready for Phase III studies. While the success in metastatic breast cancer is impressive, there is a very broad portfolio of cancer types that can be addressed, especially in conjunction with other immunotherapies.

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